Exhibit 99.1
Vantage Drilling International Reports Third Quarter Results for 2019
HOUSTON, November 7, 2019 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $25.7 million or $5.14 per share for the three months ended September 30, 2019 compared to a net loss attributable to controlling interest of $26.1 million or $5.21 per share for the three months ended September 30, 2018.
As of September 30, 2019, Vantage had approximately $825.1 million in cash, including $10.4 million of restricted cash, compared to $239.4 million in cash, including $14.4 million of restricted cash at December 31, 2018.
Ihab Toma, CEO, commented. “I am very pleased to report that we continue to increase our backlog at higher effective day rates while remaining laser focused on delivering superior results to our customers. This addition to backlog reflects the confidence our customers have in us, and the excellent safety and operational performance our teams are delivering to them.”
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships and five premium jackup drilling rigs. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells globally for major, national and independent oil and natural gas companies. Vantage also provides construction supervision services and preservation management services for, and will operate and manage, drilling units owned by others.
The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements. Vantage disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
Public & Investor Relations Contact:
Thomas J. Cimino
Chief Financial Officer
Vantage Drilling International
(281) 404-4700
Vantage Drilling International |
| |||||||||||||||
Consolidated Statement of Operations |
| |||||||||||||||
(In thousands, except per share data) |
| |||||||||||||||
(Unaudited) |
| |||||||||||||||
|
| Three Months Ended September 30, |
|
| Nine Months Ended September 30, |
| ||||||||||
|
| 2019 |
|
| 2018 |
|
| 2019 |
|
| 2018 |
| ||||
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling services |
| $ | 35,830 |
|
| $ | 59,034 |
|
| $ | 101,575 |
|
| $ | 165,813 |
|
Contract termination revenue |
|
| — |
|
|
| — |
|
|
| 594,029 |
|
|
| — |
|
Reimbursables and other |
|
| 4,814 |
|
|
| 5,522 |
|
|
| 15,978 |
|
|
| 16,868 |
|
Total revenue |
|
| 40,644 |
|
|
| 64,556 |
|
|
| 711,582 |
|
|
| 182,681 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs |
|
| 37,915 |
|
|
| 43,307 |
|
|
| 114,538 |
|
|
| 128,943 |
|
General and administrative |
|
| 6,644 |
|
|
| 9,303 |
|
|
| 86,014 |
|
|
| 22,935 |
|
Depreciation |
|
| 18,459 |
|
|
| 17,638 |
|
|
| 55,491 |
|
|
| 53,217 |
|
Total operating costs and expenses |
|
| 63,018 |
|
|
| 70,248 |
|
|
| 256,043 |
|
|
| 205,095 |
|
Income (loss) from operations |
|
| (22,374 | ) |
|
| (5,692 | ) |
|
| 455,539 |
|
|
| (22,414 | ) |
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
| 4,245 |
|
|
| 533 |
|
|
| 113,614 |
|
|
| 974 |
|
Interest expense and other financing charges |
|
| (10,465 | ) |
|
| (19,439 | ) |
|
| (36,715 | ) |
|
| (58,122 | ) |
Other, net |
|
| 97 |
|
|
| 53 |
|
|
| 221 |
|
|
| (1,031 | ) |
Total other income (expense) |
|
| (6,123 | ) |
|
| (18,853 | ) |
|
| 77,120 |
|
|
| (58,179 | ) |
Income (loss) before income taxes |
|
| (28,497 | ) |
|
| (24,545 | ) |
|
| 532,659 |
|
|
| (80,593 | ) |
Income tax (benefit) provision |
|
| (2,749 | ) |
|
| 1,515 |
|
|
| 15,852 |
|
|
| 8,698 |
|
Net income (loss) |
|
| (25,748 | ) |
|
| (26,060 | ) |
|
| 516,807 |
|
|
| (89,291 | ) |
Net loss attributable to noncontrolling interests |
|
| (28 | ) |
|
| — |
|
|
| (312 | ) |
|
| — |
|
Net income (loss) attributable to shareholders |
| $ | (25,720 | ) |
| $ | (26,060 | ) |
| $ | 517,119 |
|
| $ | (89,291 | ) |
Earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | (5.14 | ) |
| $ | (5.21 | ) |
| $ | 102.47 |
|
| $ | (17.86 | ) |
Diluted |
| $ | (5.14 | ) |
| $ | (5.21 | ) |
| $ | 102.14 |
|
| $ | (17.86 | ) |
Vantage Drilling International |
| |||||||||||||||
Supplemental Operating Data |
| |||||||||||||||
(Unaudited, in thousands, except percentages) |
| |||||||||||||||
|
| Three Months Ended September 30, |
|
| Nine Months Ended September 30, |
| ||||||||||
|
| 2019 |
|
| 2018 |
|
| 2019 |
|
| 2018 |
| ||||
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackups |
| $ | 14,910 |
|
| $ | 18,112 |
|
| $ | 46,763 |
|
| $ | 49,097 |
|
Deepwater |
|
| 18,103 |
|
|
| 17,927 |
|
|
| 50,409 |
|
|
| 59,438 |
|
Operations support |
|
| 3,014 |
|
|
| 4,119 |
|
|
| 9,474 |
|
|
| 10,614 |
|
Reimbursables |
|
| 1,888 |
|
|
| 3,149 |
|
|
| 7,892 |
|
|
| 9,794 |
|
|
| $ | 37,915 |
|
| $ | 43,307 |
|
| $ | 114,538 |
|
| $ | 128,943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Utilization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jackups |
|
| 98.4 | % |
|
| 98.5 | % |
|
| 96.8 | % |
|
| 90.9 | % |
Deepwater |
|
| 41.3 | % |
|
| 65.7 | % |
|
| 41.0 | % |
|
| 61.1 | % |
Vantage Drilling International |
| |||||||
Consolidated Balance Sheet |
| |||||||
(In thousands, except share and par value information) |
| |||||||
(Unaudited) |
| |||||||
|
| September 30, 2019 |
|
| December 31, 2018 |
| ||
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 814,724 |
|
| $ | 224,967 |
|
Restricted cash |
|
| 5,637 |
|
|
| 10,362 |
|
Trade receivables |
|
| 36,467 |
|
|
| 28,431 |
|
Inventory |
|
| 46,883 |
|
|
| 45,195 |
|
Prepaid expenses and other current assets |
|
| 19,324 |
|
|
| 17,278 |
|
Total current assets |
|
| 923,035 |
|
|
| 326,233 |
|
Property and equipment |
|
|
|
|
|
|
|
|
Property and equipment |
|
| 1,002,709 |
|
|
| 996,139 |
|
Accumulated depreciation |
|
| (263,778 | ) |
|
| (208,836 | ) |
Property and equipment, net |
|
| 738,931 |
|
|
| 787,303 |
|
Operating lease right-of-use assets |
|
| 7,515 |
|
|
| - |
|
Other assets |
|
| 13,470 |
|
|
| 16,026 |
|
Total assets |
| $ | 1,682,951 |
|
| $ | 1,129,562 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 46,692 |
|
| $ | 44,372 |
|
Other current liabilities |
|
| 39,267 |
|
|
| 17,983 |
|
Total current liabilities |
|
| 85,959 |
|
|
| 62,355 |
|
Long–term debt, net of discount and financing costs of $6,830 and $12,914 |
|
| 1,118,962 |
|
|
| 1,109,011 |
|
Other long-term liabilities |
|
| 25,426 |
|
|
| 22,889 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
|
|
Ordinary shares, $0.001 par value, 50 million shares authorized; 5,000,053 shares issued and outstanding |
|
| 5 |
|
|
| 5 |
|
Additional paid-in capital |
|
| 373,972 |
|
|
| 373,972 |
|
Accumulated earnings (deficit) |
|
| 78,449 |
|
|
| (438,670 | ) |
Controlling interest shareholders' equity |
|
| 452,426 |
|
|
| (64,693 | ) |
Noncontrolling interests |
|
| 178 |
|
|
| - |
|
Total equity |
|
| 452,604 |
|
|
| (64,693 | ) |
Total liabilities and shareholders’ equity |
| $ | 1,682,951 |
|
| $ | 1,129,562 |
|
Vantage Drilling International | |||||||||
Consolidated Statement of Cash Flows | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
|
| Nine Months Ended September 30, |
|
| |||||
|
| 2019 |
|
| 2018 |
|
| ||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Net income (loss) |
| $ | 516,807 |
|
| $ | (89,291 | ) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation expense |
|
| 55,491 |
|
|
| 53,217 |
|
|
Amortization of debt financing costs |
|
| 1,217 |
|
|
| 351 |
|
|
Amortization of debt discount |
|
| 5,354 |
|
|
| 37,021 |
|
|
Amortization of contract value |
|
| 1,643 |
|
|
| 4,721 |
|
|
PIK interest on the Convertible Notes |
|
| 5,779 |
|
|
| 5,735 |
|
|
Share-based compensation expense |
|
| 1,053 |
|
|
| 7,777 |
|
|
Deferred income tax expense |
|
| 59 |
|
|
| 1,874 |
|
|
Loss (gain) on disposal of assets |
|
| 109 |
|
|
| (1,313 | ) |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Trade receivables |
|
| (8,036 | ) |
|
| 6,290 |
|
|
Inventory |
|
| (1,688 | ) |
|
| 544 |
|
|
Prepaid expenses and other current assets |
|
| (2,046 | ) |
|
| (5,591 | ) |
|
Other assets |
|
| 3,214 |
|
|
| 1,230 |
|
|
Accounts payable |
|
| 2,320 |
|
|
| (3,245 | ) |
|
Other current liabilities and other long-term liabilities |
|
| 11,011 |
|
|
| (6,839 | ) |
|
Net cash provided by operating activities |
|
| 592,287 |
|
|
| 12,481 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Additions to property and equipment |
|
| (7,229 | ) |
|
| (8,275 | ) |
|
Down payment on Soehanah acquisition |
|
| — |
|
|
| (15,000 | ) |
|
Proceeds from sale of Vantage 260 |
|
| — |
|
|
| 4,703 |
|
|
Net cash used in investing activities |
|
| (7,229 | ) |
|
| (18,572 | ) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Repayment of long-term debt |
|
| — |
|
|
| (5,815 | ) |
|
Contributions from holders of noncontrolling interest |
|
| 1,181 |
|
|
| — |
|
|
Debt issuance costs |
|
| (487 | ) |
|
| — |
|
|
Net cash provided by (used in) financing activities |
|
| 694 |
|
|
| (5,815 | ) |
|
Net increase (decrease) in unrestricted and restricted cash and cash equivalents |
|
| 585,752 |
|
|
| (11,906 | ) |
|
Unrestricted and restricted cash and cash equivalents—beginning of period |
|
| 239,387 |
|
|
| 195,455 |
|
|
Unrestricted and restricted cash and cash equivalents—end of period |
| $ | 825,139 |
|
| $ | 183,549 |
|
|